Stock Market Update Monday, August 26th, 2019
Well that was quick.
The DOW was looking at a big loss overnight, with DOW Futures down more than 400 points on Sunday night.
But on Monday, after President Trump said that China wants to restart talks, the DOW reversed course and saw a 650 point swing!
In a G-7 interview, Trump said that China called and said: “let’s get back to the table.”
But the significance/reality of the call is being called into question.
China’s Foreign Ministry denied knowledge of the call, and the editor in chief for China’s Global Times, Hu Xijin, said that “Chinese and U.S. top negotiators didn’t hold phone talks in recent days.”
Whether or not the call was legitimate, it’s safe to say that all eyes are on the U.S. & China right now.
According to Renaissance Macro Research, the S&P has lost 135 points this year because of the trade war and Trump tweets – the biggest contributor to losses this year. The research considered S&P 1-day moves tied to earnings, the Fed, Global news, and Political news (Washington D.C.).
And heading into the last week of August, trade is one of, if not the primary reason the S&P is down 3.4% this month.
Here’s where the major indices ended the day:
- The S&P finished with a 1.1% gain. Up 31 points, the S&P ended at 2,878.
- The DOW ended higher by 1.1%. Adding 270 points, the DOW closed at 25,899.
- The NASDAQ was up 1.3%. With a 102 point gain, the NASDAQ finished at 7,854.
Crude Oil (CL) finished lower for the 4th day in a row. With an 0.8% loss, CL ended at $53.72 a barrel.
Apple (AAPL) and semiconductor stocks jumped on Trump’s comments.
Apple jumped 1.9%, leading the DOW. Micron (MU) was up 1.1% and Advanced Micro Devices (AMD) rallied 2.5%.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.